Huawei is shutting down smartphone production, could completely stop the division

Huawei is shutting down smartphone production following the latest US sanctions. And there are increasing voices that the manufacturer could also stop smartphone production entirely.

The renowned analyst Ming-Chi Kuo has examined possible scenarios for Huawei's future in the smartphone business. And these don't look promising for the Chinese manufacturer.

The worst-case scenario would be to exit the business, which of course would then play into the cards of manufacturers such as Samsung, Apple, Xiaomi and others. But this would be a major loss for the future of smartphones, after all, Huawei is one of the innovation drivers in the industry.

Another scenario is that Huawei will lose massive amounts of market share and could withdraw to the domestic market. At some point you might not be able to offer any new high-end smartphones there because of the US chip ban, but perhaps slowly and steadily build up a chip production. This could then perhaps help Huawei to make a brilliant comeback internationally in a few years.

The numbers are still looking good, however, in the first half of 2020 Huawei achieved an operating profit of 450.7 billion yuan (65.6 billion US dollars). This is an increase of 13.67 percent over the previous year.

Net income for the same period is 43.1 billion yuan ($ 6.2 billion), an increase of 23.49 percent over the previous year. This means that Huawei made around $ 35 million in profits every day for the entire first half of 2020.

Swell):
Cntechpost

The article Huawei shuts down smartphone production, could completely discontinue division first appeared on Xiaomist .

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